1031 Exchange to property owned by 2 LLC's with different but overlapping membership

[Jill F.]

I'm hoping some 1031 exchange experts might know if it's possible to defer capital gains in this situation:

I want to sell several properties owned by a 3 member (all family) LLC (LLC-A) and sell one property owned by another LLC with different but overlapping membership (LLC-B).

Buy a much larger property that would be partially owned by LLC-A and partially owned by LLC-B

The new property is one tax parcel with two addresses. Could one LLC own one address and one own the other? The addresses have different numbers of units. Could/Should the 2 LLC's be tenants in common for the new property purchase? Could the parcel be split after the sale without tax consquenses? Other ideas?

[Jackson Hanssen]

This seems viable with a TIC approach. Could you merge LLC-B and LLC-A before the sales process and do a cleaner exchange? I'd think you'd need to list both addresses as the replacement property concurrent with the single APN. However, so long as you're spending the same amount multiple replacement properties is allowed either way. I think you could split after sale for a non-taxable event, the total basis transferred in would be split across the two "new" properties.

Calling @Dave Foster to give his insights here, lots going on in this one.